LLC vs. Umbrella Policy in handling liability

from Littleton, Colorado

posted about 2 years ago

I know that this has been asked here in the past but how do you handle liability issues of being sued? Do you put your properties iinto LLC? Do you have an umbrella policy for problems that may come up? Do you do both? Can you do both? Any help would be appreciated.

Rental Property Investor from Johnstown, PA

replied about 2 years ago

Luke

This is a great issue that I want to see how others answer also. We do not have our props in an LLC but we do have an umbrella insurance policy. I dont know what protection each provides against being sued, although I have heard that LLCs offer protection where being a sole proprietor does not; I don't know if the umbrella would give an S/P the same protection, so Im curious to see what the 'experts' here have to say.